Law360, New York (March 28, 2017, 10:34 AM EDT) -- It is a fundamental principle of bankruptcy law that a Chapter 11 plan of reorganization cannot be confirmed without consent by affecting creditors unless it complies with the strict priority rules of the Bankruptcy Code. But, could the same type of priority-skipping distribution scheme be blessed by a court if contained in a dismissal of the case? That question was before the U.S. Supreme Court in Czyzewski v. Jevic Holding Corp.,[1] which reviewed a so-called "structured dismissal" of a Chapter 11 case that provided distributions to secured and junior creditors but skipped over mid-priority creditors. The high court has answered the question with a definitive "no," ruling in its March 22, 2017, decision that a bankruptcy court lacks the power to approve a structured dismissal that violates the Bankruptcy Code's priority rules. The Supreme Court's ruling in Jevic could have implications for various groups of stakeholders dealing with a financially distressed entity, including judgment creditors and unsecured creditors....